The initiative reflects growing interest among emerging economies in modernising payment systems as geopolitical tensions reshape global finance.

The Reserve Bank of India has recommended that the proposal be placed on the agenda of the 2026 BRICS summit, which India is set to host later this year.

If accepted, it would mark the first time the bloc formally considers connecting central bank digital currencies under a shared framework.

Sources said the plan is designed to reduce transaction costs, improve settlement speed and make cross-border payments more efficient for businesses and travellers.

By linking digital currencies directly, BRICS members could bypass multiple intermediaries that currently slow down international transfers.

The proposal also carries broader strategic implications, as it could reduce dependence on the U.S. dollar in certain trade and tourism transactions.

This comes at a time when global payment systems are increasingly influenced by political considerations and sanctions risks.

BRICS includes Brazil, Russia, India, China and South Africa as core members, with several other countries participating in expanded formats.

While none of the five main members have fully rolled out their digital currencies, all are running pilot programmes and investing heavily in digital payment infrastructure.

India’s digital rupee, known as the e-rupee, has gained traction since its launch in late 2022. The RBI has steadily expanded its use cases, including offline payments, programmability for welfare transfers and partnerships with fintech firms to distribute digital wallets.

China, meanwhile, has pushed to internationalise its digital yuan, while Brazil and South Africa are testing digital currencies to improve domestic and cross-border payment efficiency.

Russia has also accelerated digital currency efforts amid financial restrictions imposed by Western nations.

The RBI has previously stated that promoting the global use of the rupee is not aimed at undermining the dollar. However, U.S. officials have warned against initiatives that could weaken the dollar’s role in global trade, and President Donald Trump has previously criticised BRICS as pursuing anti-American measures.

According to sources, the RBI’s proposal builds on a 2025 BRICS declaration that called for greater interoperability between members’ payment systems.

Linking CBDCs would represent a deeper level of coordination, requiring shared technical standards and common governance rules.

Key challenges remain. Experts note that agreeing on interoperable technology platforms will be complex, as countries may be reluctant to adopt systems developed by other members.

Regulatory alignment, data security and privacy standards would also need careful negotiation.

Another sensitive issue is how to manage trade imbalances between member countries. One idea under discussion involves using bilateral foreign exchange swap arrangements between central banks to settle imbalances arising from digital currency transactions.

Sources cautioned that progress could be slow, as consensus among diverse economies with differing financial systems and political priorities will be essential. Any framework would need to balance national sovereignty with the benefits of deeper integration.

Despite these hurdles, analysts say the proposal highlights India’s ambition to play a leading role in shaping the future of digital finance among emerging economies.

Hosting the 2026 BRICS summit gives New Delhi an opportunity to push initiatives that reflect its growing influence in global economic governance.

For BRICS as a bloc, a linked digital currency system could strengthen internal trade ties and enhance resilience against external shocks.

Even if initial implementation is limited to specific use cases such as tourism or trade finance, it could lay the groundwork for broader cooperation.

As discussions continue, the proposal underscores a wider shift toward experimenting with digital currencies at the sovereign level.

Whether BRICS can translate ambition into action will depend on political will, technical cooperation and the ability to navigate the global financial order without escalating tensions.

Feedzai wins €237 million contract to secure payments as Europe prepares for 2029 launch of its sovereign digital currency

The European Central Bank (ECB) has taken an important step in shaping the future of European finance by choosing Portuguese artificial intelligence startup Feedzai to help prevent fraud in its planned digital euro. The partnership, valued at up to €237.3 million ($278.7 million), reflects the ECB’s determination to ensure security and trust remain central to Europe’s journey toward a sovereign digital currency.

For the ECB, the digital euro is more than just a technological innovation. It represents a strategic project aimed at ensuring Europe’s financial independence in a global economy where payments are often dominated by U.S. companies such as Visa and Mastercard. The move also responds to growing interest in alternative payment models, including stablecoins pegged to the U.S. dollar.

By building a European system that is safe, reliable, and backed by its central bank, the ECB is signaling its intent to protect both consumers and the wider economy from external vulnerabilities.

Feedzai, based in Coimbra, Portugal, has earned global recognition as a leader in AI-driven fraud detection, processing nearly $8 trillion in payments every year for clients including Novobanco in Portugal and Wio Bank in Abu Dhabi. In the ECB’s project, Feedzai will work with PwC to develop an AI model capable of scoring digital euro transactions for potential fraud risks.

The model will track patterns, behavior, and transaction histories to identify unusual or suspicious activities, allowing payment service providers to decide whether a digital euro transaction should proceed. This ensures that security checks are proactive, protecting customers without disrupting the smoothness of everyday payments.

The ECB has structured the contract as a four-year agreement, with a maximum cap of €237.3 million and an estimated value of €79.1 million. Importantly, officials have emphasized that the framework agreement is designed with safeguards in place: no payments will be made until the project is fully underway. This reflects the ECB’s cautious yet ambitious approach, balancing fiscal responsibility with long-term vision.

Feedzai’s success is part of a broader effort by the ECB to build a strong ecosystem around the digital euro. Alongside Feedzai, other European and international firms have been awarded contracts worth between €27.6 million and €220.7 million, including French IT consulting giant Capgemini. Together, these collaborations are intended to strengthen Europe’s technological infrastructure and ensure that the digital euro will be competitive on a global scale.

The ECB has positioned the digital euro as a response to shifting financial realities. With U.S. companies dominating much of the payments landscape and new technologies rapidly reshaping money, European policymakers want to ensure that the eurozone is not left behind.

A digital euro, accessible across the bloc, would offer citizens and businesses a safe alternative that is guaranteed by the central bank. Officials have stressed that security, transparency, and accessibility will define the project, with artificial intelligence playing a key role in building trust from day one.

The journey toward a digital euro is far from complete. The ECB is still awaiting legislative approval, which it expects to seek by the middle of next year. If lawmakers give the green light, the plan is to launch the digital currency in 2029. That timeline gives the central bank several years to fine-tune its systems, strengthen fraud prevention tools, and prepare European financial institutions for the transition.

For Europe, this project carries symbolic as well as practical significance. It shows a continent taking control of its financial future, building tools to reduce reliance on external actors, and using cutting-edge technologies to protect its citizens. The ECB’s choice of a Portuguese startup, one already recognized internationally, also highlights the strength and innovation within Europe’s own fintech sector.

As the global financial system continues to evolve, the ECB’s digital euro initiative offers a glimpse of what the future may look like: a secure, AI-protected digital currency designed to empower Europeans, uphold autonomy, and enhance resilience in an increasingly digitalized world.